What You Need to Know About Leasing a Vehicle

Have you ever wondered if leasing a vehicle is for you? It’s a bit like having a lease on a house or apartment. There are many benefits similar to ownership, but there’s also a safety bet. For instance, if something goes wrong with the car, whose responsibility it is to fix it depends on the lease. Drivers are still required to have insurance, so in many cases issues like finding a dent in the car unexpectedly can be handled via insurance without impacting the rates. Sometimes a lease has a damage protection plan offer. Drivers need to carefully consider the lease agreement to be certain who is responsible for what and whether added protection is for them. It’s also worthwhile to call the insurance company to be sure of coverage with a leased vehicle.

Since the car will be returned, it’s not “owned” by the driver. However, while the car is in the driver’s care, there’s a certain level of expectation when it comes to maintenance. For example, it still needs regular oil changes. Routine wear and tear are to be expected, similar to an apartment, but that’s a very subjective term. Ask what this entails because it can vary with every lease. This is why it’s sometimes best to make minor repairs yourself (via a professional) because it can be much costlier to have the lessor company deduct funds due to what they consider excessive damages.

One of the biggest concerns with leased cars is the cap on miles. How many miles a person can drive in a lease period can vary drastically. For those who commute a long way to work, standard leases may not work. If you want to use the car for road trips, standards leases also won’t work. This can be frustrating since you’re paying often time the same cost to finance a car but don’t get all the same privileges. One way around this is to negotiate for a high mileage lease. The terms are higher, but it gives the driver more freedom.

Of course, the benefit of leasing a car is you can return it at the agreed upon date without having to worry about selling it. If you’d like, you can then lease a new car—sometimes for a lower rate since you’re now an established customer. It’s a great solution for drivers who get bored with a car after a few months, like to try new things with minimal commitments, or love driving brand new cars but don’t want to incur the costs of buying.

Leasing a car isn’t for everyone, but it can be a fantastic solution for some drivers. Most importantly, make sure the lease is well understood and ask about discounts and ways of saving or increasing miles. Many items in a lease can be negotiated.